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ChocoDoge, an NFT Gamefi project, announced the launch of USCD, the seigniorage stablecoin on Dogechain.
Road Town, British Virgin Islands, Sept. 7, 2022 (GLOBE NEWSWIRE) — ChocoDoge, an NFT Gamefi project, announced the launch of USCD, the seigniorage stablecoin on Dogechain. In the volatile cryptocurrency market, especially in the Defi space, stablecoins provide crucial stability for investors and users. Currency-pegged stablecoins are pegged to $1 and held by a centralized third party, which contradicts the fundamentals of the world’s first cryptocurrency, whose main purpose was to create an untouchable decentralized currency system .
Innovative algorithmic currencies maintain immutable value by using unique algorithms and codes that change their total volume and do not require reserves to maintain their fundamental value.
Challenges Facing the GameFi Industry
Traditional yield farming projects rely on user trust. Furthermore, if something goes wrong with these platforms, both subjectively and objectively, it will cause a snowball effect that will reduce the attractiveness of the protocol and ultimately cause most platforms to fail.
Most GameFi projects use models to ensure that their big investors and venture capitalists can break even as quickly as possible (thus gaining their trust and thus bringing more money to development). Most of the time, this results in a quick sell-off when the investment phase begins.
Sometimes, the pre-cast/pre-sale amount is so large that it affects the overall economy of the game. Big investors and venture capitalists took their money and left, leaving developers and players with a broken, unfinished game with no money to finish it.
The vision behind the ChocoDoge approach
ChocoDoge decided not to chase profits or useless metrics like high TVL or unreasonable APR. The goal of the development process is to come up with a protocol that can be used for a long time, has a high ROI, and is secure.
With a game studio mentality, most of the money from the agreement will be used to help make the game. ChocoDoge adheres to roadmap development milestones and hosts events and incentive programs to help spread the word about the product.
As the first GameFi project to use the seigniorage stablecoin algorithm on Dogechain, ChocoDoge is committed to constantly watching and improving the economy in the ChocoDoge ecosystem to avoid losing control of inflation, which is the mainstay of most Gamefi projects in the market question.
ChocoDoge pays special attention to improving safety
When it comes to safety, ChocoDoge will be audited by market leaders. This will ensure that the smart contract is safe and protect the user from any risks that may arise. There will also be a program to reward those who find bugs.
On the technical side, ChocoDoge is time-locked. This means that several epochs (four in this case) must pass before the smart contract can be changed. There will be no mint or withdrawal buttons on the Masterchef address.
In terms of openness and honesty, the project’s documentation is located at docs.chocodoge.dog Has all the information about it, including technical details, smart contract addresses and tax rates. Important terms and conditions changes will also be shared on the official social media pages.
The main components of the agreement
1. Tokens
There are three types of tokens. Let’s take a look at them:
USCD Cash Tokens are intended to be used as a way to buy and sell items. Using a successful approach from earlier algorithmic tokens, the protocol has a built-in stability mechanism that attempts to keep USCD pegged to 1 USDC over time.
Also, it’s important to remember that even though USCD is actively pegged to the algorithm, that doesn’t mean it’s always worth 1 USDC because it’s not collateralized. USCD is not a stablecoin backed by cryptocurrency or fiat currency.
As more games and apps are added to ChocoDoge’s ecosystem, the USCD can also be used to easily purchase games and in-app items.
ChocoDoge Share is a way to determine the value of the ChocoDoge protocol and investors’ confidence that it will keep USCD near its peg (CD). Every time an epoch grows, the protocol generates USCD and distributes it proportionally to all CD holders who deposit their tokens in BANK.
The primary purpose of ChocoDoge Bonds (USBD) is to encourage changes in the supply of USCDs during times of contraction. When the TWAP (Time Weighted Average Price) of USCD is below 1 USDC, USBD is manufactured and can be purchased with USCD at the current exchange rate. Taking USCD tokens out of circulation (deflation) would cause the price of one USDC to rise when they were exchanged for USBD.
These USBDs can be traded for USCD when the future price is above the peg, and there is an additional incentive the longer they stay above the peg. When USD/USD trades above the peg, it means there is inflation and selling pressure, which pushes it towards $1/USD.
2. Banks
Any CD token holder (as long as the $USCD TWAP value is greater than 1 USDC) can stake their CD tokens here to win USCD at the end of each epoch. The hedge fund will use the newly created USCD as working capital, and the Bank will use it as an incentive when it expands.
An epoch lasts four hours. If the user takes any action, CD withdrawals will be frozen for 12 epochs and USCD reward claims will be frozen for 6 epochs.
At the beginning of each new era, the bank will conduct a scan to verify the availability of the entire USCD.
What BANK does next depends on the state of the USCD market:
3. Bond Mechanism
If the initial value of USCD at the beginning of a cycle is less than 1 USDC ($1), then BANK will stop minting new USCD and USBD will be available for purchase. A USBD can only be purchased with a USCD.
Each USBD token represents at least one burned USCD token whenever the price falls below the peg. When converting USBD to USCD, please use the following exchange rates:
1 USBD = [min(1.3;p)]^$2
where p = the price of USCD at the time of the swap.
By comparing the current price of USCD to 1.3 and choosing the lesser of the two values, consumers are guaranteed to be able to redeem USBD for USCD using the above method at a bonus percentage of up to 69%.
take away
ChocoDoge is committed to avoiding profit maximization and pursuing meaningless metrics such as high TVL and APR. The purpose of the development phase is to provide a method that can be maintained over the long term with sufficient return on investment and security. They have done an excellent job of adhering to the timeline of roadmap milestones and have come up with campaigns and incentive programs to help move the product forward. They are committed to continuously monitoring and improving the economy of the ecosystem to avoid losing control over inflation, which is the main weakness of most GameFi projects in the market, and they were the first to use the seigniorage stablecoin algorithm on Dogechain, That’s why they deserve support.
To learn more about ChocoDoge, visit https://chocodoge.dog/
Twitter: https://twitter.com/ChocoDoge_
Telegram channel: https://t.me/chocodogechannel
Telegram chat: https://t.me/ChocoDogeChat
Disclaimer: This article is not an offer to sell, a solicitation of an offer to buy, or a recommendation of any securities or any other products or services. This is not investment advice. Please do your own research.
Media Contact:
Contact: Isaac Smith
Company: Chocolate Dog
Email: support@chocodoge.dog
City: Toronto, Canada
website: https://chocodoge.dog/
Editorial Office: socials.submitmypressrelease.com
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